Commission seeks to make European technology more competitive

On Tuesday (February 8) Margrethe Vestager, Executive VP of the European Commission, held a press conference announcing the European Chips Act, which seeks to boost European production of chips in an effort to make Europe more competitive in the global market. The plan will make €43 billion, of both public and private investment, available for European companies to stay at the forefront of the development and manufacturing of chips. 

“Chips are necessary for the green and digital transition - and for the competitiveness of European industry,” Vestager said in a press release. “We must do more together - in research, innovation, design, production facilities - to ensure that Europe will be stronger as a key actor in the global value chain.”

Chips are the semiconductors that are utilized in almost all electronic devices. They can be found in everything from smartphones to cars to medical equipment. At the moment, Europe produces around 10% of the global market share of chips, making Europe highly dependent on importing chips from other countries. This act seeks to increase European production to 20% by 2030. Improving European production will make Europe’s market more competitive for private companies as well as reduce the likelihood of future shortages. 

“Without chips, no digital transition, no green transition, no technological leadership. Securing the supply in the most advanced chips has become an economic and geopolitical priority,” Commissioner Thierry Breton said. “By investing in lead markets of the future and rebalancing global supply chains, we will allow European industry to remain competitive, generate quality jobs, and cater for growing global demand.”

The proposal from the European Commission primarily focuses on keeping Europe on top of research and development towards cutting-edge chips, increasing the production of chips and working with EU countries to anticipate and prevent future shortages of chips.

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